Pokhara University

Ace Institute of Management

Report on Education Industry of Nepal

Faculty
Mr. Narayan Pradhan Managerial Communication & Communication Skills Practicum

Submitted by:
Mr. Madhu Sudan Koirala MBAe B Batch: 2011-13

20th November, 2011

SIGNATURE PAGE
I certify that I have read this document and in my opinion, it is satisfactory in scope and quality. This report is partial fulfillment of Managerial communication and Practicum for MBA Course at Ace Institute of Management, Pokhara University during the Term II of 2011.

(Signature) Project Evaluator Ace Institute of Management

DECLARATION
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I declare that this project entitled is a result of my own study and research carried out in the year 2011. It has not been previously submitted to any other Universities or Examination.

Signature:

Mr. Madhu Sudan Koirala

ACKNOWLEDGEMENT
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I take this opportunity to thank Ace Institute of Management (AIM) for having Managerial communication as a part of M.B.A Trimester II pedagogy. Many people have influenced the shape and content of this term paper, and many supported us through it. I express my sincere gratitude to Mr.Narayan Pradhan for assigning me a Report on Education Industry of Nepal. This is an interesting and burning subject. He has been an inspiration and role model for this topic. His guidance and active support has made it possible to complete the assignment. I also thank our friends who have helped and encouraged me throughout the working of the report. Last but not the least I would like to thank the Almighty for always helping me.

EXECUTIVE SUMMARY

Education is vital to human development. Nepal recognizes this fact and is committed to making education universal. Despite substantial progress made in this direction, much still remains to be done. The country is still caught in the vicious cycle of poverty, lethargy of illiteracy, and tradition. Three-fifths of the country is still illiterate, with three-fourths of women population illiterate. In the 1990s, the country moved toward democratization; however, the unstable governments and tenuous leadership have not yet yielded clear benefits for the masses. The education system is plagued by a lack of financial support, deficiency of trained human resources, inadequate physical infrastructure, and managerial inefficiency. As a consequence, the country is heavily dependent on foreign aid. Although more people than ever are moving for higher education to India and other European countries, Nepalese education industry has experienced tremendous growth in recent years. Accredited academic as well as technical Higher Degrees are being offered by colleges and schools affiliated with renowned universities, which is positive and promising. Besides witnessing growth of domestic institutions, Nepalese Education Industry is proving fertile for foreign universities and colleges as well. Overall education system is being revivified with increased Government expenditure, and foreign investment. Illiteracy rate has declined and number of PhD holders (Appx. 2000) has increased. With people being more aware about the importance of education, gender is no longer a strong determinant of access to education. Now we can see female leaders, entrepreneurs and employees in many corporate houses, government organizations, NGOs and INGOs. Development in education sector has created ample opportunities for female and has helped in societys effort to eliminate gender discrimination. Being an MBA student we must know the present situation and be able to predict future. Thorough environmental scanning, in-depth analysis and apprehension can pave way for overcoming challenges and for tapping lucrative opportunities present in the Education sector, which is one of the growing industries. While making this report we have done various secondary researches via online, articles, publication, journals, report and related books. Its been difficult for us to find material in context of Nepal but with our effort, interesting subject matter and your coordination makes it possible.

LIST OF ACRONYMS

AIM Ace Institute of Management PU Pokhara University SWOT Strengths, Weaknesses, Opportunities and Threats GDP Gross Domestic Product NGOs Non Governmental Organizations GoN Government of Nepal MoE Ministry of Education MDGs Millennium Development Goals FY Fiscal Year

Table of Contents
Part One

INTRODUCTION
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Page No.
1. Background 2. Goals/Objectives of Report 3. Roles/Jobs Performed

Part Two

INTRODUCTION OF INDUSTRY
1. Introduction of Topic 2. Importance 3. Objectives 4. History 5. Administration 6. Structure 7. List of Universities of Nepal 8. Statistics (Source) 9. SWOT Analysis

Part Three

RESEARCH PART & CONCLUSION

1. Methodology 2. Major Findings 3. Future Direction 4. Challenges 5. Conclusion 6. Recommendations

REFERENCES

List of Tables
Table 1: Education Budget

Page no.
7

Table 2: Total Schools by Level and Development Region Table 3: Total Institutions by Development Region and Types Table 4: Total Colleges, Students and Teachers Table 5: Students Studying Abroad on Self- Financing Table 6: Resources for Education Table 7: MDG in Nepal- Key Indicators

List of Figures Figure 1: Ranges of Disciplines Figure 2: Enrollment at different Educational Levels

Part One

INTRODUCTION
1. BACKGROUND
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Ace Institute of Management has set up an Interactive Program under which the students are required to research on scope, problems and challenges of a specific industry and prepare a report consisting possible suggestions. This intensive program, as a blend of real world experience and classroom lectures, gives the students an opportunity to identify the present situation of that industry, its future prospects and gain handful of information. In addition, it helps the students learn: to prepare formal reports, to use proper research methodologies and to interpret the data for further use

This report is based on a research of education industry in Nepal. Education industry is a growing industry and knowing about it is obviously an advantage to the researcher. Access to basic education is the right of every individual. Education is the driving force of growth and progress in an increasingly interconnected and globalized world. Developing countries, where majority of the worlds population reside, need to maximize on productivity and capabilities of advanced human capital. At the country level, education means strong economic growth due to productive and skilled labor force. At individual level education strongly co-relates to higher returns in earning, and more informed and aware existence. Education empowers people to defend and pursue their rights. Education is the most effective tool used to empower women and promote tolerance within a society.

2. GOALS/OBJECTIVES OF REPORT

Conducting a research and preparing a report provides ample learning opportunities to students and valuable information and insight to the readers. Looking towards industrys market, its growth, revenue and cost, economic and social contribution, employment generation, investment opportunities and other aspects is beneficial and is the main objective of this project. This report aims: To analyze the current situation, problems, challenges and its solutions. To know future prospects and its investment opportunities. To use the theoretical knowledge from the coursework to conduct survey and analyze the result.

3. ROLES/JOBS PERFORMED

I have spent majority of time searching the information related to education. My research is mainly based on secondary research (internet, books, magazine, articles, and prospectus).

Besides this, other tasks such as researching websites, taking faculty suggestion, discussing and interpreting data have also taken major time while preparing this report.

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Part Two INTRODUCTION OF INDUSTRY 1. INTRODUCTION OF TOPIC

Nepali education service industry has been gaining economic boom for a decade. The sudden and rapid mushrooming of educational institutions is a proof of how broad a scope this industry is subjected to have. Today discourses are taking place in view of the educational needs of Nepal in the new millennium. The start of new millennium embodies remarkable outcomes of the modernization trend, particularly of the last five to six decades. During these five decades some countries have achieved tremendous technological advancement, industrialization of work and productions, expansion of market access and military capabilities. The developments have direct implications globally on all aspects of life including social, economic, and political. Keeping these things constant, education is only the factor which can make them possible and help achieve a prosperous life for all. Nepal has crossed over 5 decades of changes that have been influenced by the post-colonial world trend of modernization. Organized development of education is one of the important aspects of this trend. However the dilemmas and the tensions that the countries like Nepal have to live trying to cope with the changes are tremendous: there are social and economic limitations, geographic and political limitations, and the inertia of the past ways and means impeding desire for new momentum. These limitations and dilemmas arise because of the modern perspective of development. Whereas, on other the hand, it is in these very social and geographical circumstances and the cultural and historical roots that the countries like Nepal should search for prospects of better changes. This report has been prepared with these points in view, analyzing the contexts, problems and prospects of education for new millennium in Nepal.

2. IMPORTANCE

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Importance of education in the coming years is recognized as a necessary ingredient for sustainable economic growth. Education is seen as the key to better quality of life as well as means of providing a new set of skills required for the future years. Investment in human capital prepares the critical mass of educated man power on the one hand and on the other hand prepares future leaders in various fields to steer successfully the country through thick and thin. Education enables individual to make informed choices broaden their horizons and opportunities and to have a voice in public decision making. Education is one of the most important factors that act as a counter weight to social and economical mobility imposed by culture and historical biases. Education shifts economy from primary industry to secondary industry and then further to tertiary Industry.

3. OBJECTIVES Individual Development Developing physical and mental faculties Acquiring the capacities of understanding, appreciation and expression through word and act, are the fundamental aims of education Aim of education should be to make children self- confident and self dependent, and to make them strong physically and mentally Education is meant to develop every child's character, personality and culture and as much knowledge as the child can assimilate not merely memorize. Social and National Development Social, aim of education in equally important because an individual lives in society and has his obligations towards nation. There is a realization that, "The present education system does riot yield required results mainly because it is divorced from the real social content and social goals". Social Transformation Education should not merely equip an individual to adjust with society to its customs and conventions, but it should enable him to bring desirable changes in the society.

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 It has been, therefore, suggested that, "Every educational institution from secondary school to university college should be developed to become an agency of change...." However, it is essential that we should be quite clear about the purpose of change.

Value Education Education is a methodical effort towards learning basic facts about humanity. And the core idea behind value education is to cultivate essential values in the students so that the civilization that teaches us to manage complexities can be sustained and further developed. It begins at home and it is continued in schools. Everyone accepts certain things in his/her life through various mediums like society or government. Help everyone in improving the value system that he/she holds and put them to use. Everyone has understood their values in life they can examine and control the various choices they make in their life. One has to frequently uphold the various types of values in his life such as cultural values, universal values, personal values and social values. Thus, value education is always essential to shape one's life and to give him an opportunity of performing himself on the global stage. The need for value education among the parents, children, teachers etc, is constantly increasing as we continue to witness increasing violent activities, behavioral disorder, lack of unity in the society etc. The family system in Nepal has a long tradition of imparting value education. But with the progress of modernity and fast changing role of the parents it has not been very easy for the parents to impart relevant values in their wards. Therefore many institutes today conduct various value education programs that are addressed to rising problems of the modern society. These programs concentrate on the development of the children, young adults etc. focusing on areas like happiness, humility, cooperation, honesty, simplicity, love, unity, peace etc. 13

 Impart need-based education and create an ethos for research of relevance. Contribute to social & industrial development of the region.

4. HISTORY
Nepalese Education has only recently started to develop. The Rana regime in Nepal has suppressed education in Nepal so much that it had inflicted a blow to Nepalese Education. Rana regime feared educated public so education was never encouraged there. There were only few English middle and high schools and a girls' high school in Kathmandu prior to Second World War. After end of this regime in 1951, education in Nepal was given importance. Though an education System was established in Nepal, thousands of poverty - stricken people could not send their children to school. During 1975, free primary education was offered to children by the then government. Caste problem was a major deterrent in development of Education of Nepal then. Some of the schools were set in town, so children staying in village cannot attend there. Moreover the cost of living in town was so high that people could not afford to stay there. English education and its supremacy spread in 1991. Illiteracy rate in Nepal is about 58%, 72% being women. The Education System of Nepal is based on that of United States. Nepal has received assistance from various NGOs. Several International Organizations also helped Nepal with its education system and in giving primary education to rural children. Nepal Government has realized that education is the only way to curb poverty in Nepal and is trying hard to develop education. Now there are about 26 thousand schools, 415 colleges and five universities and two academics of higher studies.

5. ADMINISTRATION

The Ministry of Education (MoE) is the apex body responsible for initiating and managing education activities in the country. The Minister of Education, assisted by the State/Assistant Minister, provides 14

political leadership to the Ministry. The Ministry, as a part of the government bureaucracy, is headed by the Secretary of Education and consists of the central office, various functional offices, and offices located at the regional and district levels. The Central Office or the Ministry is mainly responsible for policy development, planning and monitoring, and evaluation regarding different aspects of education. With a purpose of bringing education administration nearer to the people, the Ministry has established five Regional Directorates and 75 District Education Offices in five development regions and 75 districts respectively. These decentralized offices are responsible for overseeing nonformal and school-level education activities in their respective areas. Regional Directorates are mainly responsible for coordinating and monitoring and evaluation of education activities and the District Education Offices are the main implementing agencies.

6. STRUCTURE

Education in Nepal is structured as school education and higher education. School education includes primary level of grades 15, lower secondary and secondary levels of grades 68 and 910 respectively. Pre-primary level of education is available in some areas. Six years old is the prescribed age for admission into grade one. A national level School Leaving Certificate (SLC) examination is conducted at the end of grade 10. Grades 11 and 12 are considered as higher secondary level. Higher Secondary Education Board (HSEB) supervises higher secondary schools which are mostly under private management. Previously these grades were under the university system and were run as proficiency certificate level. Though some universities still offer these programs, the policy now is to integrate these grades into the school system. Higher education consists of bachelor, masters, and PhD levels. Depending upon the stream and subject, bachelors level may be of three to five years' duration. The duration of masters level is generally two years. Some universities offer programs like M.Phil and post-graduate diplomas.

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Legally, there are two types of school in the country: community and institutional. Community schools receive regular government grants whereas institutional schools are funded by school's own or other nongovernmental sources. Institutional schools are organized either as a non-profit trust or as a company. However, in practical terms, schools are mainly of two types: public (community) and private (institutional). A third type of school is the kind run by the local people enthusiastic toward having a school in their locality. They do not receive regular government grants and most of them do not have any other sustainable financial source. Supported and managed by the local people, they can be thus identified as the real community schools. Except one, all universities/academies are publicly managed and are supported by public source fund. However, public universities also provide affiliation to private colleges. Two academies of higher education are single college institutes whereas other universities have constituent and affiliated colleges across the country. In terms of subjects, these colleges covered a wide range of disciplines which is shown in Fig.1.

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Figure 1: Range of Discipline

7. LIST OF UNIVERSITIES OF NEPAL

This is a list of universities in Nepal. Prior to the establishment of the first college in the country, TriChandra College in 1918, higher education in Nepal was nonexistent. Until 1985, Tribhuvan University had remained the one and the only university in Nepal. In the early 80s, His Majesty's Government developed the concept of a multi-university system for the country. One important assumption behind the concept was that each new university should have a distinctive nature, content and function of its own. The first new university that was established was Mahendra Sanskrit University. The inception of this university was soon followed by Kathmandu University in 1990, Purbanchal and Pokhara Universities in 1995 and 1996 respectively. Many schools and colleges are run by private initiatives but none of the universities in Nepal are private.

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B. P. Koirala Institute of Health Sciences is the first and foremost Health and Medical University of Nepal, established in 1994 and upgraded to university in 1999. Currently there are six universities in Nepal, and two institutions recognized as universities: Tribhuvan University Kathmandu University Pokhara University Purbanchal University Mahendra Sanskrit University Lumbini Bouddha University Mid-Western University, Birendranagar Far-Western University, Kanchanpur Nepal Agriculture and Forestry University Rampur, Bharatpur

At present there are only five accredited universities operating in Nepal. Other four universities have been proposed for establishment but the government has not allocated the funds for universities and the issue has not been decided yet. Along with the four new universities, one more are supposed to be established in Nepalgunj. 8. STATISTICS (SOURCE) I. Enrolments of Different Education Levels

Fig 2: Enrolments of Different Education Levels

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Basically we have five level of education i.e. primary (1-5), lower secondary (6-8), secondary (8-10), higher secondary (11-12) and higher education (bachelors, masters and PhD). As of 2011 report of MoE in all level of education male percentage is higher than female but one interesting fact is that in present context in primary level there is almost equal in male and female in education which means that in past there is difference in education, inequality among male and female going school but in recent years due to various projects, policies and program from both local and international level this differences is becoming narrow. II. Education Budget (Total) In NRs. '000' FY Nationa l Budget 7723822 6 9162133 5 9979221 9 9612479 6 1024000 00 1116899 00 1268851 00 1439123 00 1689956 00 2360158 97 2859300 Educati on Budget 101760 74 117495 79 140728 47 144024 21 156132 74 180596 54 212504 47 230055 25 283900 00 390864 07 466166 % of Edu. Bud. 13.17 12.82 14.1 14.98 15.25 16.17 16.75 15.99 16.8 16.56 16.30 AGR of Edu. Bud. 15.5 19.8 2.3 8.4 15.7 17.7 8.3 23.4 37.7 19.3 Foreign Aids (FA) Grant Loan 152798 0 170139 9 209751 2 211513 6 217305 5 307193 0 373118 5 402569 4 554850 1 814108 1 111623 11202 88 88469 6 36519 4 77983 0 10552 63 23661 47 20529 60 25608 01 22055 89 28692 42 33914 % of FA in Edu. 26.02 22.01 17.5 20.1 20.68 30.11 27.22 28.63 27.31 28.17 31.22 AGR of FA in Edu. -2.3 -4.8 17.6 11.5 68.4 6.4 13.9 17.7 42.0 18.2 19

2056/5 7 2057/5 8 2058/5 9 2059/6 0 2060/6 1 2061/6 2 2062/6 3 2063/6 4 2064/6 5 2065/6 6 2066/6

Table 1: Education Budget

7 2067/6 8

00 3379000 00

72 578275 42 17.11 24.0

97 124844 11

26 52192 9 22.49 -10.6

Note:

(Ministry of Finance, various years of Red Books) AGR= Annual Growth Rate

Looking to the data of a decade education budget is increasing. Growth rate of Government budget is increasing but in 2059- 61 growth rate has diminished this might be due to political instability and proper implementation of policies. Not only Government budget but also there is much to do with foreign aid in education sector of Nepal. Although there is decrease of growth rate in recent years it is again taking pace from 2059 we have maximum growth rate in FY 2061/62. Now looking at recent data foreign aid is diminishing and reason behind it might be due to delay in peace and constitution writing process.

III.

TOTAL SCHOOL BY LEVEL AND DEVELOPMENT REGION Dev. Regio n ECD/ PPCs Total Scho ol Existing Structure P. G 1-5 TOTAL East Cent KV West MW FW 31089 6979 9137 1790 6583 4715 3675 33160 7148 9683 2213 7458 5120 3751 32684 7056 9478 2076 7366 5067 3717 LS G 6-8 11939 2418 3868 1507 2561 1662 1430 S. G 9-10 7266 1427 2580 1170 1642 867 750 HS. G 1112 2564 489 921 365 626 266 262 New structure Basic G 1-8 32865 7094 9510 2093 7413 5110 3738 Sec G 9-12 7559 1481 2751 1288 1687 877 763

Note: P=Primary, LS=Lower Secondary, S=Secondary, HS=Higher Secondary (+2), G=Grade, East=Eastern, Cent=Central, KV= Kathmandu Valley, West=Western, MW=Mid Western, FW=Far Western

Table 2: Total School by Level & Development Region

IV.

HIGHER SECONDARY EDUCATION 2067 (2010/11) 20

(Total Institutions by Development Region and Types) Dev. Region TOTAL In % Eastern Central Kath V. Western Mid Western Far Western Public 2243 73.1 490 632 95 557 278 286 Private 530 17.3 91 252 175 126 34 27 Private +2 160 5.2 31 106 79 12 5 6 Campus 134 4.4 23 65 39 33 6 7 Total 3067 100.0 635 1055 388 728 323 326

Table 3: Total Institution by Development Region & Types

V.

HIGHER EDUCATION 2009 (2066/67) (Total Colleges, Student and Teacher) University/ Institution TOTAL TU NSU KU PurU PoKU BPKIHS NAMS PAHS 982 792 21 21 95 50 1 1 1 Campus Female 166042 148932 931 3910 7373 4220 564 94 18 Student Male 420728 374706 3624 9282 18490 13171 1192 203 60 Teache r Total 14684 13411 423 341 49 50 183 142 85

Table 4: Total Colleges, Students & Teachers

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Note: In previous years MoE publications (2063-65), student data were reported on the basis of enrolment records. However, this year, student data is taken from the exam appeared records to make the students data more realistic and to cover all the private campus data also. TU=Tribhuvan University, NSU=Nepal Sanskrit University, KU=Kathmandu University, PU=Purbanchal University, PoKU=Pokhara University, BPKIHS=BP Koirala Institute of Health and Science, NAMS=National Academy of Medical Science, PAHS=Patan Academy of Health Science

Talking about higher education data of 2009 there is around 70% male and 30% female. As we have already mentioned about this differences. This is because in past there is difference in male and female education. Female are not given to join school and colleges so there is huge differences but when we look on the present data of primary enrolment there is equal in percentage. Looking at universities and there enrolment TU is at the top because before privatization almost all resources are handled by government and education sector too so the public is more in this university. Other reason might be the cost, accessibility, history and faculty related to education TU is pioneer in education sector. After TU, higher education according to its enrolment is followed by PurU, PoKU, KU and so on Faculties and number of college are also more in TU comparing to other Universities. This might be due to financial support of government. Although TU is owned and operated by government but other universities are not solely owned by government. There is coordination between universities and government body for the functioning of universities.

VI.

ABROAD STUDY Students Studying Abroad in Self Finance (Based on Issue of No Objection Letter (NOL)) Dev . Reg . Tot 68 2168 Un G Dipl oma Bac helo r Mast er Po G Ph D Lan guag e 1490 33 75 115 Tra ini ng Oth er Tota l Fema le Mal e

4452

41

616

1139

3584

780 22

al Eas t Cen t KV We st MW . FW

6 85 46 3 35 2 10 7 13 18 293 1112 584 662 54 47 676 2524 1586 1031 140 81 257 821 556 318 63 31

6 66 15 6 83 93 14 7 24 24 17 24 3 0

9 129 604 283 385 27 14

0 56 21 8 12 8 12 2 11 3 121 275 107 174 15 31

2 1707 6197 3696 2916 340 232 471 2237 1538 742 93 41

8 123 6 396 0 215 8 217 4 247 191

Table 5: Students Studying Abroad in Self-finance

Note: UnG=Under Graduate, PoG=Post Graduate. Other category covers the records of students who went for entrance exams, professional courses, etc.

Source: GoN, MoE, Monitoring, Evaluation and Supervision Division Research and Education Information Management Section (REMIS) report of Nepalese Education in Figures 2011.

It is very much important issue regarding education industry that around 10,000 Nepalese students annually go abroad for higher studies in their self finance regardless of government funding. Why are students moving abroad for job and studies despite huge investment from government as well as private and international aid? This is the burning issue of which very less people have sufficient view to answer. Above data shows the number of students from various development regions going abroad for studying at different education level. Central development region, which also includes Kathmandu valley, has the highest student outflow.

VII.

RESOURCES FOR EDUCATION

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2009 Pupil / teacher ratio (primary) FOR EDUCATION RESOURCES

19.5% of government spending goes to education 33

Public expenditure on education : Source: UNESCO Institute for Statistics, Education Profile, Nepal, 2009. as % of GDP 4.7 as % of total government expenditure 19.5

Distribution of public expenditure per As per the report of UNESCO (2009), total public expenditure on education from government level (%) - 2009 : side is only 19.5% within it 2% goes to pre-primary level, 60%, 25% and 13% goes to primary, 2 pre-primary secondary and tertiary level respectively. 60 primary So we can conclude that there is no so much investment from government side towards pre25 secondary primary, secondary and higher level of education. So this is the point where we can think of and make some contribution. Contribution 13 a sense that we can make investment in those levels and in tertiary grab the opportunities. unknown

9. SWOT ANALYSIS SWOT is short for strengths, weaknesses, opportunities, and threats. Ideally, the analysis helps a company build on its strengths, find a cure for its weaknesses, identify and grasp its opportunities, and keep it safe from threats. In response to this educational industry SWOT analysis is one of the important tool to measure the industry strength and upgrading it, minimizing weakness, grabbing opportunity timely and responding the possible threats in a professional way. An overview of the SWOT confronting the education industry is as follows: Strengths Strong academic reputation with well -developed public education system 24

English is language of instruction and communication, which means a large addressable market Cost-competitive Already a regional magnet for students seeking quality education We have that potential to grow our society (population), potential investment opportunity Nepal have good universities Awareness of government and private sector Students wants to be educated Large talent pool of educated students Importance given to spoken and written English makes us a better fit in the globalized world. Growth in supporting sectors like the stationeries, educational aids etc Foreign universities affiliated colleges, well experienced and diverse faculties,

WEAKNESS
Less importance for education Gross & net enrolment Different standards Inequality in Quality of education Poor wage for teachers Regulatory hurdles, e.g. private commercial schools can only operate as middlemen of foreign universities programs Lack critical mass of quality professors &teachers High land costs, which would translate into higher course fees for institutions that require their own campuses 25

Shortage of affordable accommodation Student quotas at local universities, e.g. law, medicine Local institutions efforts to attract international students are fragmented and uncoordinated Lack of quality assurance and accreditation agencies, which results in uneven quality among service providers, especially the private commercial schools Difficulty in securing student passes for international students, especially for the private commercial schools Quality of the students passing higher education need to be improved to make them employable Lack of concentration on the primary education Lack of infrastructure to educate the economically backward class Less acceptance of distance education in the industry Lack of teaching faculty More Importance given to Rotting than inquisitive learning Inadequate number of universities. 5 universities for 2.5 crore people

OPPURTUNITIES
The demands of the youth of the country for more enhanced and participatory education. The cost of studying abroad is too high for an average Nepali; hence we can deliver it at a lower cost. The ease and comfort of attaining a sound academic back in the comfort of our own country. The improved curriculum and participatory approach to teaching and learning. The availability of enough funds and executing bodies that are required to execute this vision. Education contributes 16% of GDP which indicates that education can be a significant and sustainable contributor to the economy 26

Globalization Impact where foreign universities willing to set up in India and it has effect in Nepal too. Use of latest technological aids for education. Foreign aid could be a great opportunity to enhance our education industry Scholarships About 10,000 peoples are going abroad for higher study each year. If we can hold them it will be beneficial for both institution and government.

THREATS
The political instability The rigid and unaccommodating law The nominal competition for international affiliations The poor economy of the country. The reluctant attitude to change and innovation. Inclination of Nepali youth to foreign lands. Excess concentration on English might cause losing out some of our local languages in the long run. Rising costs of the education Brain drain due to the lack of importance for research and development Reluctance of educated people to take up the traditional jobs like the ones in small scale industries. Availability of internship and post-graduation job opportunities for international students in other countries. Concerted marketing efforts of other host countries to attract international students and funded by the government, e.g. British Council, IDP Australia, US Department of State Human resource of Nepal is not competitive. The development programme is not so effective

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Part Three
1. METHODOLOGY There might be various methods while doing research i.e. Primary research (observation and adaptation research, exploratory research, descriptive research) and Secondary research. Primary research basically deals with first hand material like making data by ourselves, interviewing, questioning, original literary or theatrical works whereas when we use the already published material for our further research then we are doing secondary research. Talking about my report and research methodology I follow secondary research. In this report I have done various researches via online. I even go through educational industry related articles, publication, journals, report and books.

2. MAJOR FINDINGS

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There still is a considerable gap between male and female literacy rates. A gulf also existed in literacy rates between rural and urban areas. Nepal launched a twelve-year literacy program in 1990, targeting 8 million people between the ages of six and forty-five.

Educational opportunity by members of only the wealthier and higher caste groups is gradually diminishing and the long-standing prejudice against the education of women is slowly breaking down.

Education remains largely urban-biased. In rural areas where schools were set up, the quality of instruction is inferior, facilities are very poor, and educational materials are either difficult to find or virtually unavailable.

Although there has been a remarkable numerical growth in the literacy rates, as well as the number of education institutions over the years, the quality of education has not necessarily improved.

The large majority of schools and colleges are run by poorly prepared and poorly trained teachers and professors. Though the government allocation of funds to education has increased from 13.9% of the total government budget in 2000/01 to around 16.4% in 2008/09, most of the budget is spent to finance salaries of increasing number of teachers and to some extent to the implement of development project.

Gap in policies versus commitment. Countries like India and China are becoming educational hub where Nepal is still fighting with illiteracy i.e. 34%.

NEPAL EDUCATION ACHIVEMENT

Nepal has made significant improvements in terms of enrolment at all levels of education, according to the Education for All Global Monitoring Report 2011. For example, the number of children enrolled in primary education increased by 1.2 million between 1999 and 2008. However, the report also states that the high dropout rate of 38 per cent affects the gains in enrolment. As far as adult literacy is concerned, the report warns that Nepal is among those countries that are likely to miss the goal of halving the number of women and men who cannot read and write by 2015. Although Nepal achieved an adult literacy rate of 58 per cent in 2008, which represents a 25 point increase since 29

1994, the country had nearly 7.6 million illiterate adults in 2008 and needs to intensify its efforts to ensure universal literacy. In addition to providing a detailed account of the progress towards achieving Education for All goals worldwide, the report examines widespread human rights abuses keeping children out- of-school. The report highlights perceptions of unfairness related to education as a powerful source of grievance. Many parents see education as a route out of poverty and into employment. If children are denied an equal opportunity because of ethnicity, language, religion or location, it intensifies group-based grievance. The report documents the damaging consequences of conflict, especially in the poorest countries, which is destroying educational opportunities for millions of children.

3. FUTURE DIRECTION
The Education industry is crucial to the workforce capability of all other industries, but it also faces unique workforce development challenges of its own. With its responsibility for skilling the current workforce and preparing future generations for work and life, the Education industry is subject to intense public and political scrutiny and to frequent waves of policy change and review.

4. CHALLENGES
Despite few examples of success, there are much problems and challenges. Education management, quality, relevance, and access are some of the critical issues of education in Nepal. Societal disparities based on gender, ethnicity, location, economic class, etc. are yet to be eliminated. Resource crunch has always been a problem in education. These problems have made the goal of education for all a challenge for the country. The very mountains that give Nepal its grandeur provide a physical and economic challenge to building a sustainable infrastructure. Most of the population lives in rural areas where no phones, roads, clean water, 30

or schools exist. A child growing up in Nepal faces some of the worst living conditions in the world. Roughly 50% of Nepalese live in poverty - on less than US$1 a day. Of every 100 children in Nepal, 84 live in villages, 47 are malnourished, and 40 belong to extremely poor families. While the country's educational system has made a great deal of progress in a very short time, there is still much to be done. Many government schools are in bad physical shape while those that exist are extremely underfunded, especially in the countryside. Although primary education is free, government schools are often inadequate and overcrowded. Many schools in remote areas are very basic and even sometimes unsafe. Often these schools have no blackboard and very little furniture. Even supplementary materials like libraries, children's books, and computer labs are rare. Although all government schools receive some financial support from the government for teachers' salaries, villages must pay for other expenses themselves. As a result, most schools do not have a library nor do they provide books other than textbooks. The few books that they have are usually in black and white - no color - and are not children's books. Schools often provide books left by travelers that are written in English or other foreign languages rather than in Nepali. In many cases, the few books that schools have are so valuable that teachers lock them up, unavailable to curious children. Without creative, colorful books, children do not learn to love reading or explore the world through a book. Many government schools also want to provide computer education, yet very few can afford computer labs. Most Nepalese children in rural areas have never seen a computer. Yet, adequate computer knowledge and skills are major factors in determining potential future employment opportunities. Individual family situations and cultural bias further complicate the effort to educate students. Typically, young children walk several miles every day just to attend school. Students are unable to make the trip regularly because of poor weather such as the rains of the monsoon season and because they are needed at home. Girls often have less access to education than boys. While 35% of males are illiterate, 57% of females cannot read or write. There is a saying in Nepal that educating your daughter is like fertilizing your neighbor's crops. Because the Nepalese culture considers females as tradable assets, parents have difficulty rationalizing their personal development. While girls suffer the most, all the children of Nepal suffer from the many obstacles to their learning.

MDG GOALS AND ITS CHALLENGES

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The Millennium Development Goals (MDGs) are eight goals to be achieved by 2015 that respond to the world's main development challenges. Education sector is one of the important goals among 8 goals that are identified by MDG and there is both opportunity and challenges for achieving it. The 2010 report suggests that despite the decade-long conflict and political instability, Nepal's progress has been remarkable in a number of areas, for example, net enrollment rate has increased to 93.7%, gender parity has achieved in enrolment for primary education. While the progress has not been sufficient to meet the targets on achieving universal primary education, eliminating gender disparity in secondary education and tertiary level of education.

Millennium Development Goals in Nepal - Progress on key indicators

Millennium Development Goals and Key Indicators Goal 2: Achieve Universal Primary Education [6] Baseline 1990 1995 2000 2005 Latest Figure Target 2015

Target: Ensure that by 2015, children everywhere, boys and girls alike, will be able to complete primary schooling Net enrolment rate in primary education (%) Survival rate to grade 5 (% of cohort) Literacy rate 15-24 year olds 64 na 50 69 38 56 81 63 70 87 79 73 89 81 Na 100 100 100

Source: Nepal Millennium Development Goals Progress Report, UNDP 2011.

Table 7: MDG in Nepal-Key Indicators

According to MDG progress report 2011; its aim is to be 100% by 2015 in achieving universal primary education which guidelines are also followed in Nepal. In past decade enrolment rate has increase in tremendous way from 64% in 1990s to 90% by 2011 and there is still the challenging factor that primary education must meet 100%. This is the quite tough task but nothing is impossible so public as well as private investment should go hand by hand. 32

5. CONCLUSION
In short education Industry of Nepal has the potential to grow by means of increase in literacy equality of education standards. We need to convert our foreign aids into work which will results in producing future leaders. We have the Potential to grow as a Great Nation, and education is the best tool to polish our youth. In order to meet the international standard of education, we need to contribute a-lot towards this sector, which will later meet the international standard demand for skilled labors and technology. There is a huge investment opportunity in this sector and need to take advantage of India and China.

6. RECOMMENDATIONS
Gender gap can be removed by providing backward families regarding the importance of education. Early age marriages and poverty is the major cause of gender gap Educational institutes should be more responsible on imparting quality education than cultivating images as profit making organizations having nothing to do with value education and knowledge Infrastructure is in the worst condition in some rural areas and needs to be developed. Teachers in our nation are considered as after parents but are not fully dedicated to students. Colleges are getting empty but coaching centers are over populated and private tuitions have become been blooming. Trainings should be provided to teachers and college administration should ensure that teachers are duly discharging their duty. Family can play a positive role in promoting educational industry by letting their children to get knowledge Government can play a mass role, in fact it is already playing a good role but not up to the mark. Political parties use illiterate younger to market their party and forgotten their need for education. Political parties should aware its cadres about importance of education and should stop exploiting illiterate mass for their political benefits. Need for creation of skill development. More emphasis should also be given to developing skill sets which can make students employable. Special reorientation for school drop-outs. School dropout should not be discriminated. Their other talents need to be discovered and circumstances to enhance the talent should be provided. E-learning and Online Tutoring. More E-Learning and Online tutoring centres are to be created to spread the education. Hike in salaries of teachers and professors, especially in public sector schools the competency level of the teachers are to be improved and the pay packages are to be aligned with that. 33

Hiring of teaching faculty should be more stringent. Rules and regulations surrounding not for profit need to be reviewed.

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Psacharopoulos, G., Tan, J. P., and Jiminez, E. (1986). Financing education in developing countries: An exploration of policy options. Washington, DC: The World Bank. Thapa, B. K. & Singh, G. B. (1995). Financial situation of primary schools in Nepal: implications for educational planning, study report. Kathmandu: Research Centre for Educational Innovation and Development (CERID), T. U. Thapa, B. K. (1993). Financing of education in developing countries: Dissertation, University of Alberta. Implications for Nepal. Unpublished Doctoral

Thapa, B. K. (1996). Financing of education in Nepal. In B. R. Shakya, H. R. Bajracharya, B. K. Thapa, & R. Chitrakar (Eds.), Education and Development. Kathmandu: Research Centre for Educational Innovation and Development. Wagly, M. P. (1996). BME report. Kathamndu: Primary Education Development Project, MOE. Ministry of Education (MoE). (2068[2010/11]). Students studying abroad in self finance based on no objection letter issued. Kathmandu: Scholarship Section Ministry of Finance. (various years). Red book. Kathmandu: Author Millenium Development Goals (2011). Progress Report 2010, Kathmandu: UNDP

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